25 Mar 2015
Cable rebounds on speculation about a possible rise in UK’s rates – AceTrader
FXStreet (Barcelona) - The AceTrader Team comments that GBP/USD witnessed a rebound from 1.4831 after hawkish news reports cropped up with BoE’s Deputy Governor mentioning that UK might see a rate rise despite inflation falling to zero.
Key Quotes
“Despite extending sell off in o/n NY session to 1.4831 just ahead of Asian open, cable rebounded on short covering, some traders cited a hawkish news report on Reuters as the reason.”
“It is reported that interest rates in Britain are likely to rise despite inflation falling to zero, BoE Deputy Governor Minouche Shafik told Kent Business in comments reported on Wednesday.”
“The policymaker said the main reason behind lower inflation was a rapid decrease in oil prices and the negative effect of an appreciating British pound on UK firms' profits.”
“Shafik told Kent Business that if you take out those temporary external factors, the underlying core inflation is not that low.”
“She continues to say the central expectation of the Bank of England's monetary policy committee is that the next move will be up, the publication reported.”
“However, Shafik said the central bank will keep its options open, including a possible rate cut in the future, it said.”
Key Quotes
“Despite extending sell off in o/n NY session to 1.4831 just ahead of Asian open, cable rebounded on short covering, some traders cited a hawkish news report on Reuters as the reason.”
“It is reported that interest rates in Britain are likely to rise despite inflation falling to zero, BoE Deputy Governor Minouche Shafik told Kent Business in comments reported on Wednesday.”
“The policymaker said the main reason behind lower inflation was a rapid decrease in oil prices and the negative effect of an appreciating British pound on UK firms' profits.”
“Shafik told Kent Business that if you take out those temporary external factors, the underlying core inflation is not that low.”
“She continues to say the central expectation of the Bank of England's monetary policy committee is that the next move will be up, the publication reported.”
“However, Shafik said the central bank will keep its options open, including a possible rate cut in the future, it said.”